The Electric Vehicle Playbook
for Emerging Markets
A Guide to Navigating the EV Landscape
By Ilaria Mazzocco and Ryan Featherston | October 22, 2025
The Electric Vehicle Playbook
for Emerging Markets
A Guide to Navigating the EV Landscape
By Ilaria Mazzocco and Ryan Featherston | October 22, 2025
Against the odds, electric vehicle (EV) adoption has rapidly accelerated over the past two years in several emerging and developing markets.
EVs are rapidly transforming the global $3.5 trillion automotive industry. The transformation also highlights the growing importance of China as a technology provider in emerging markets.
Through the e-mobility transition, countries are racing to meet economic and climate goals while balancing downside risks to industry and the danger of overreliance on Chinese supply chains. China is currently the world’s largest EV and EV battery producer, producing three-quarters of all EV batteries sold globally.
Every country currently crafting an automotive sector strategy must abide by its own unique blend of goals, constraints, and advantages. Emerging markets can identify their goals, such as job creation, technology transfer, or EV adoption, and then evaluate their comparative advantages and relationship with China to identify what tools are available to them. Through this process, they can maximize their climate, environmental, and economic benefits from the EV industry.
To help navigate the EV landscape, the CSIS Trustee Chair in Chinese Business and Economics conducted an in-depth study to spotlight effective approaches and lessons for success.
Take our quiz to learn more about how some key emerging markets have approached the automotive transition and the lessons they offer:
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Reading the
EV Landscape
The global auto industry is rapidly evolving, and the emergence of Chinese manufacturers has created new opportunities and risks for emerging markets.
Markets that want to increase EV adoption can now do so rapidly by leveraging free trade. However, Chinese EV makers are the main beneficiaries of trade in EVs. This may raise geopolitical concerns for some countries hesitant to increase dependency on a country already so dominant in other areas of manufacturing. This is especially true since EVs are generally now connected vehicles that collect copious amounts of data.
China’s willingness to use its chokehold over strategically important goods such as rare-earth elements and magnets and introduction of export controls on battery technology underscores this kind of risk. Ultimately, most countries can benefit from diversifying their sources of EVs and EV technologies, which can include but not be limited to Chinese firms.
Countries with existing automotive industries that want to limit Chinese imports will need more tailored strategies that recognize the trade-offs involved in transforming the domestic industry. Policies to attract foreign direct investment or judiciously protect the domestic industry can be effective but should be evaluated carefully due to potential costs.
The majority of countries that have succeeded in developing a manufacturing base for EVs, including for exports, have at least initially leveraged the domestic market. The most successful policies have been those that expanded the domestic supply, providing more choices to customers.
Thanks to free trade agreements, a small number of countries have succeeded in rapidly expanding their manufacturing of EVs and components without a domestic market. However, this requires high pre-existing levels of integration and market access at a time when many countries are raising new trade barriers. High dependence on exports to a single market can also leave countries vulnerable to sudden policy changes abroad.
Many countries are seeking to attract new investment in the EV value chain. For now, Chinese companies are the most high-profile investors in many regions. Moving forward, this will create economic opportunities, as well as risks of overdependence. Most countries will welcome more diversified sources of EV imports and manufacturing investment.
Lessons for the
Road Ahead
The recent trend of rising EV adoption in emerging markets is evolving rapidly but offers critical lessons for policymakers everywhere.
While some emerging markets could become EV leaders in terms of sales and production, this is not set in stone. These value chains are still nascent, sales may plateau, and policies could change. However, it is clear that trade—and Chinese companies—play a key role in determining which countries are advancing most rapidly in electrifying their transportation sector.
There are trade-offs involved with all policies. Although value chains may become more diversified in the near future, free trade currently means increased dependency on China. On the other hand, industrial policy, which could deliver domestic value chains in the long term, can easily fail and be extremely costly.
Looking forward, EVs seem set to play a critical role in the automotive industry of many emerging markets. This transition presents critical windows of opportunity for countries seeking to transform their automotive sector and markets.
This digital report is made possible by the generous support of the Drive Electric Campaign.
Authors
Ilaria Mazzocco, Deputy Director and Senior Fellow, Trustee Chair in Chinese Business and Economics
Ryan Featherston, Research Associate, Trustee Chair in Chinese Business and Economics
Special Thanks
The authors would like to thank Cosima Zaveta for her help with research and graphics, as well as Andy Yang, Qingfeng Yu, Isabella McCallum, and Scott Kennedy for their support. All errors remain solely the responsibility of the authors.
iDeas Lab Story Production
Editorial, design & production by: Sarah B. Grace, Shannon Yeung, & Gina Kim
Quiz development by: Lindsay Allison
Quiz design by: Shannon Yeung
Development assistance by: Mariel de la Garza
Data visualizations by: Sarah B. Grace & Ryan Featherston
Copyediting support by: Madison Bruno
Image Credits
Cover: Made by Mark Donaldson, Gina Kim, and Sarah B. Grace using modifications to Adobe Stock illustrations by AlexZel, Aurielaki, Basecamp, Golden Sikorka, Macrovector, Pavlo Syvak, Pleskach, Syafak, & Jozefmicic
Quiz Icons: Made by Gina Kim using modifications to Adobe Stock illustrations by AlexZel, BratKer, Golden Sikorka, Kilimanjaro, Pavlo Syvak, Pleskach, RNko, & Syafak
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